Supporting the Nation's Coal Workers and Communities in a Changing Energy Landscape

 
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Supporting the Nation's Coal Workers and Communities in a Changing Energy Landscape
Supporting the Nation’s Coal
Workers and Communities in
a Changing Energy Landscape
                       Don Anair
                       Amine Mahmassani

                       July 2013
Supporting the Nation's Coal Workers and Communities in a Changing Energy Landscape
The shift to a low-carbon economy has proceeded largely
    without thoughtful plans or preparation for the workers and                New analysis finds both
    communities that have sustained the US economy for more                    that it is possible to
    than a century. The economic upheaval resulting from the
    dramatic job losses in the coal industry over the last decade              support coal workers in
    has uprooted families, deepened economic anxiety, and left
    community leaders scrambling to keep schools open and social
                                                                               the transition and that
    services in place. And the trend is set to continue: many more             these comprehensive
    coal workers and communities are facing the same fate without
    intentional policies to address these changes.                             policies are affordable.
          As part of this shift, the nation must support coal workers
    in finding new career paths and help coal communities recover
    from the economic losses stemming from coal’s decline (see           affordable. Indeed, relative to the federal response to the Great
    box). This will require long-term individual supports and            Recession in 2008–2009 and the COVID-19 pandemic of
    benefits, long-term investments in community infrastructure,         2020–2021, as well as the scale of investments needed to decar-
    empowering local leadership to drive place-based solutions,          bonize our economy by 2050, investing in the nation’s coal
    and ensuring that the legacy of coal mines and coal-fired power      workers comes with a relatively small price tag. Approximately
    plants is fully remediated. These elements are critical to a fair,   89,875 coal workers were employed in the United States in
    just, and equitable move to low-carbon energy; are urgently          2019. The cost of providing a comprehensive set of supports to
    needed; and must be sustained over time.                             the portion of these workers who will face job losses before
          Ultimately, broader changes to our energy systems will         reaching retirement age represents a tiny fraction of the esti-
    impact a larger swath of fossil fuel–dependent workers and           mated $2.5 trillion in additional capital investments in all
    communities as we drive toward decarbonizing the economy             energy sectors by 2030 that would be needed to reach net-zero
    by 2050. This policy brief focuses on coal-dependent workers         emissions by 2050 (Larson et al. 2020). We estimate that the
    because they have faced economic disruption over the past            cost of these supports will range from $33 billion over 25 years
    decade and are imminently threatened by the shift to low-            to $83 billion over 15 years.
    carbon energy in the near term.
          But fortunately, there are solutions. New analysis by the      Multiple Overlapping Economic Crises
    Union of Concerned Scientists and the Utility Workers Union
    of America finds both that it is possible to support coal workers    The federal government can and does leverage considerable
    in the transition and that these comprehensive policies are          resources in response to a crisis. In the wake of the Great

        Forced to Choose Between Jobs and Community
        When Dayton Power & Light (a subsidiary of AES Corpora-          services and infrastructure. After two more years of further
        tion), by far the largest employer in Adams County, Ohio,        devaluations, the total annual loss to the county budget stood at
        announced in 2016 that it would close two coal-fired power       $787,800—a gaping hole with nothing to fill it (MacGillis 2018).
        plants in the county simultaneously, the workers and their            For the most part, workers are left to their own devices
        families knew that finding new opportunities would almost        in answering the question of what comes next and sorting out
        certainly mean leaving behind the place they called home         how to make that happen. In the United States, government
        (MacGillis 2018). By its nature, mass deindustrialization        has almost entirely failed to act at all, let alone in any compre-
        forces people to make the hard choice about whether to           hensive fashion, in order to plan for or alleviate the economic
        stay or go.                                                      and social fallout that is resulting from energy system transfor-
             Further, the local government faced its own set of chal-    mations. As the transformation of the energy sector continues
        lenges as the value of the coal plants dropped by $56 million    to play out chaotically across the country, the challenges faced
        due to the planned closures. This created an annual drop of      by the people of Adams County and similar areas are the norm—
        $218,400 in tax revenue for the county’s general fund, which     people and places left behind by a process that leaves them
        had an annual budget of about $8 million to pay for public       invisible, unheard, and on their own.

2     union of concerned scientists | utility workers union of america                                                  Cover image: yangna/iStockphoto
Supporting the Nation's Coal Workers and Communities in a Changing Energy Landscape
Recession, the United States ultimately spent $831 billion                Importantly, however, the burden of meeting these
through the American Recovery and Reinvestment Act                   emissions reductions targets should not fall disproportionately
(CBO 2012). The COVID-induced economic crisis that began             on the workers who have helped keep the lights on for
in 2020 led to the steepest declines in economic activity            generations—and with well-designed policies at all levels of
and employment since the Great Depression in the 1930s               government, we can ensure that workers and communities
(Wheelock 2020). In 2020 Congress appropriated $2.59 trillion        are not left behind. While jobs in wind and solar are growing
in new spending in response to the pandemic (CRFB 2021;              quickly, these new jobs are often not being created in the places
US Treasury Data Lab 2020), and President Biden signed a             where existing fossil fuel jobs are being lost, nor do they offer
$1.9 trillion COVID-19 relief package in March 2021.                 commensurate pay, benefits, or union density. Intentional
     In coal country, the current economic crisis comes on           policies are needed to create economically equivalent job oppor-
the heels of a decade of massive job losses and the resulting        tunities in specific geographies and to prepare workers for
economic upheaval, as well as generations of disinvestment.          those new jobs (Zabin et al. 2020), most of which will be outside
The shift away from coal has accelerated over the past decade.       of the energy sector.
Coal-fired electricity fell from about 50 percent of the nation’s
electricity generation in 2010 to about 20 percent in 2020.
Cheap and abundant natural gas and steep reductions in costs
                                                                     Cost Estimates for Supporting
of wind and solar have led to closures and fuel switching
                                                                     Dislocated Coal Workers
and have driven approximately 90 gigawatts of coal retirements       This analysis estimates the cost of providing a range of
from 2009 to 2019—nearly 29 percent of the 314 gigawatts             transitional support for coal miners and workers at coal-fired
online in 2009 (EIA 2012b; Bolinger 2020; Aramayo 2020;              power plants who will likely lose their jobs before they
Storrow 2020; Stromsta 2020). In addition, many states               reach age 65 (see Table 1, p. 4, and methodology section, p. 5).
are increasing their renewable electricity standards (Barbose        It focuses only on direct employment in coal mining and coal-
2021), and eight states plus the District of Columbia and            fired power plants, but indirect jobs in the manufacturing and
Puerto Rico have adopted 100 percent carbon-free targets
(Deyette 2019). Many utilities, including those that still
rely on coal-fired electricity, have also made commitments
to reducing emissions and increasing renewable electricity
generation (Bird and Clevenger 2019).
     In the coal mining sector, employment nationally fell from
91,611 in 2011 to 51,795 in 2016 (EIA 2012a; 2017). The job losses
were centered in central Appalachia, but the economic pain
is now being felt in western mines as well, as evidenced by the
high-profile layoffs in Wyoming in 2019 (Erickson 2019). This
acute decline in coal mining employment comes after a steady
decrease in employment from increased mechanization begin-
ning in the 1960s and the shift toward large mining operations
in the West beginning in the 1980s, both of which led to
increases in labor productivity over the latter half of the 20th
century (Reis and National Journal 2013; Schweinfurth 2002).
     The latest science underscores the urgency of addressing
climate change. Limiting some of the worst impacts of climate
change will require cutting global carbon dioxide (CO2)
emissions by about 45 percent by 2030 and reaching net-zero
                                                                                                                                                             Savany/iStockphoto

CO2 emissions no later than 2050 (IPCC 2018). Recent studies
show that achieving these targets will require increased
deployment of low-carbon energy and would likely lead to
a near phaseout of coal (Larson et al. 2020; SDSN 2020).             The national shift away from coal as a primary source of electricity has largely left
Achieving this emissions trajectory will continue the trend          coal miners and coal-fired power plant employees behind. Affordable solutions are
                                                                     available today to honor and support the people who have helped power the United
toward low-carbon energy and the closures of coal-fired power        States for generations, and to ensure that affected workers have the time and
plants before the end of their useful lives (Grubert 2020).          resources they need to adapt to the new national economy.

                                                    Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape                                           3
transportation supply chains will also be impacted and in need                certification programs, apprenticeships, or degrees at two-
    of transition assistance (Pollin, Wicks-Lim, and Chakraborty                  or four-year institutions of higher education.
    2020). Importantly, these calculations assume that job losses            •    College education for family members: Children of
    are spread evenly over time, but in practice these coal plant                 dislocated workers would also be eligible for educational
    closures are likely to occur unevenly. Because of this, and                   benefits as a way to help break cycles of generational
    because workers may want to avail themselves of these benefits                poverty, similar to how GI Bill educational benefits can
    before closures actually occur, policymakers should consider                  be transferred to spouses and children in certain cases
    front-loading appropriations. Table 1 shows the low- and                      (VA 2013).
    high-range estimates for the comprehensive set of supports
                                                                             •    Training programs and job placement services:
    needed to help workers either transition into retirement or
                                                                                  Dislocated workers would be presumed eligible for the
    find new economic opportunities (JTF 2020). These supports
                                                                                  Adult and Dislocated Worker Programs under the Work-
    include the following.
                                                                                  force Innovation and Opportunity Act (WIOA) at the
    •      Five-year comprehensive wage and benefit replace-
                                                                                  Department of Labor in order to train for new opportuni-
           ment: Five years allows individual workers time to plan
                                                                                  ties in their local areas.
           and train for new career opportunities. Full wage and
           benefit replacement (or wage insurance) for all dislocated        •    Additional support structures: Workers would be able
           coal workers includes health care premiums and employer                to access mental health and counseling services, as well as
           retirement contributions.1 Employer retirement contri-                 relocation allowances when appropriate in individual
           butions can come in the form of 401(k) plans or defined-               circumstances.3
           benefit plans (pensions).2                                             Using estimates of the number of dislocated workers and
    •      Educational benefits: The educational benefits for                the reported national average salary for both coal miners
           returning World War II veterans had a profound impact             and non-nuclear power plant operators (see the methodology
           (DOD 2019), and this benefit would, similarly, allow              section below and the technical appendix, online at www.
           dislocated workers to access a wide range of educational          ucsusa.org/resources/support-coal-workers), we can then
           opportunities that could include vocational school,               calculate the range of costs for supporting these workers as

    TABLE 1.    Estimated Cost of Supporting Dislocated Coal Workers

        Policy Support                                              Low Case                                 High Case
                                                                    Assumed Coal Phaseout=2040               Assumed Coal Phaseout=2030
                                                                    25-Year Program                          15-Year Program
                                                                    ($ billions)                             ($ billions)

        Five-year comprehensive wage replacement                                   $31.4                                    $59.1
        for dislocated coal workers
        Educational benefits                                                        $0.3                                     $7.3
        Educational benefits for family members                                     $0.6                                    $14.6
        Job placement services and training programs                                $0.2                                     $0.4
        Relocation assistance                                                       $0.5                                     $0.8

        Educational benefits for previously dislocated coal                         $0.1                                     $0.8
        workers (2015–2019)
        Total over life of program                                                 $33.2                                   $82.9

    The table shows the range of total inflation-adjusted cost estimates for major components of support for dislocated workers in the high and low
    cases (assumptions are outlined in the technical appendix). A primary driver of the costs is the assumed length of the program, which would
    extend five years beyond the year when the last worker exited the industry. As discussed in the methodology section, the shorter time period in
    the high case means that more workers would require assistance because fewer would reach retirement age during the life of the program.

4        union of concerned scientists | utility workers union of america
the coal industry declines (Probst and Burke 2019). Recognizing         2020). Finally, historical and ongoing air pollution from burning
the significant job losses that have occurred in recent years,          coal harms public health, particularly overburdened and
we also estimate the costs of offering educational benefits to a        underserved communities, whose residents are often people of
portion of workers who lost coal jobs over the last five years          color and have low incomes (Thind et al. 2019; Sergi et al. 2020;
(between 2015 and 2019).                                                Johnston and Cushing 2020).
                                                                             For all of these issues, we must ensure that coal companies
                                                                        and utilities are held liable for the costs to the greatest extent
A Down Payment on a                                                     possible before saddling taxpayers with the bill.
Comprehensive Solution                                                       Managing the shift away from coal-fired electricity—with
These rough estimates represent just one element of the com-            proper planning, robust stakeholder engagement, and sustained
prehensive set of policies needed to help coal workers continue         funding—can lead to successful outcomes for workers, under-
to support their families while preparing for new careers or job        served communities, and local governments. Plant closures can
opportunities. For example, the Black Lung Disability Trust Fund,       also allow for redevelopment or repurposing of sites, facilitating
a critical mechanism for providing medical support to disabled          new economic opportunities, job creation, and community
miners and their families, is projected to be approximately             engagement. Comprehensive cleanup can create significant local
$15 billion in debt by 2050 (GAO 2018). The insolvency problem          jobs (French 2020; 2019; NPRC and IBEW 2018), and cleaning
exists even without considering the recent resurgence of the            up legacy issues such as contaminated groundwater will allow
disease (Hall et al. 2019), or future liabilities due to coal company   these communities to become places where people want to live
bankruptcies (GAO 2020), meaning that this is likely an underes-        and work. This will help improve health outcomes for commu-
timate of future benefit needs. The fund could be fixed with a mix      nities and attract new residents and new businesses. Invest-
of debt forgiveness and continued coal excise taxes (GAO 2018).         ments in infrastructure, especially broadband, will help drive
     Importantly, our cost estimates do not represent the full          new economic development.
range of investments needed to ensure that not only workers
but also communities have a chance to recover from the
decline of coal and diversify their economies (JTF 2020), and                 Managing the shift away
more research is needed to quantify the problems. For exam-
ple, communities heavily dependent on tax revenue from coal                   from coal-fired electricity—
plants or coal mines will need temporary support to ensure
that fire, police, schools, and other social services continue to
                                                                              with proper planning,
operate (Morris, Kaufman, and Doshi 2019), and these costs                    robust stakeholder
could be large. Communities will also need grants for assessing
economic opportunities and planning for future development—
                                                                              engagement, and sustained
likely coming through expanded grant programs in the various                  funding—can lead to
federal programs that were supported during the Obama
administration’s POWER Initiative programs (Raimi et al. 2020;                successful outcomes.
Cecire 2019) or new formula-based community development
block grants for impacted communities.
     Ensuring the cleanup of the legacy of coal extraction and               The United States need not start from scratch—Germany
combustion is a critical element needed to facilitate future            and Canada have both adopted national comprehensive plans
economic development. Mine reclamation has been hamstrung               to manage the shift away from coal (TFJTCCPWC 2018;
by lax enforcement and the recent wave of coal bankruptcies,            CGSCE 2019). States are beginning to lead the way, with New
with more to come (Bruggers 2021; Moore 2020). The existing             Mexico (Energy Transition Act 2019) and Colorado (JTAC
estimates of the cost of mine reclamation do not account for            2020) enacting policies aimed at helping workers and commu-
the expected shortfalls due to declining coal production and            nities dependent on the coal industry chart new paths.
future coal bankruptcies when coal companies will attempt
to shed their cleanup responsibilities (and likely succeed).            Overview of Methodology
Burning coal also creates toxic ash that often remains in large
ponds or impoundments. Upwards of 90 percent of these                   Here we summarize the methodology for estimating the costs
ponds are leaking (Earthjustice 2020), and many are contami-            of worker supports and name some key assumptions. For a
nating groundwater and drinking water (Frank and Maloney                more complete description, please see the technical appendix.

                                                      Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape    5
NUMBER OF WORKERS AFFECTED                                           mark a significant hit to the local economy—this is reflected
    First, we estimated the number of coal miners and coal-fired         in our definition of counties most at risk from coal closures
    power plant workers employed in the United States. There             (see risk criteria below).
    were 52,804 individuals employed in coal mining in 2019                   The basic assumption of this analysis is that all of these
    (EIA 2020). Notably, the data from the Energy Information            workers will lose their jobs as the coal industry declines.
    Administration include some occupations such as yard workers         Importantly, however, not all of them will require assistance
    and office workers, so this represents an overestimate (Pollin       because workers who reach age 65 by the time they face layoffs
    et al. 2019). For coal-fired power plants, however, employment       will not be eligible for wage replacement or require retraining
    data are available only for rate-regulated utilities for which       (Pollin, Wicks-Lim, and Chakraborty 2020; Pollin et al. 2019).
    annual reporting to the Federal Energy Regulatory Commission         A limitation of this analysis is that actual closure dates cannot
    is required. Using these data, we calculated the average             be predicted with certainty, so we estimated the average annual
    number of employees in five different sizes of power plants,         number of dislocated workers based on the demographics of
    defined in terms of plants’ generating capacity in megawatts         the workforce (see technical appendix).
    (MW) (see Figure 1). These averages were then applied to the              The analysis defines four criteria for defining a “coal
    remainder of the non-reporting coal plants to estimate employ-       county” based on existing jobs or recently lost jobs in coal
    ment based on generating capacity. Using this method,                mining or coal-fired power plants. A coal county, for the
    we estimated that 37,071 people were employed at coal-fired          purposes of this analysis, is defined as:
    power plants in 2019. For comparison, the 2020 U.S. Energy           •   a county that reported coal production or coal mining
    and Employment Report found 38,158 individuals employed at               employment in 2015 or 2019,4 or
    coal-fired utilities (NASEO and EFI 2019).                           •   a county that has faced the retirement of a coal-fired
          Smaller coal plants tend to be located in more urban areas         generating unit since the beginning of 2015 or where a
    and used only when electricity demand is high. Larger plants             coal-fired generating unit was in operation at the end
    are often located in more rural areas where the utility may              of 2019.
    be the largest employer in town and the hundreds of lost jobs
                                                                               Based on these criteria, we identified 462 counties (out
                                                                         of a total of 3,142 counties or county-equivalents in the United
                                                                         States) that have or had a direct connection to coal. We used
            Employment at Rate-Regulated Coal-Fired
    FIGURE 1.                                                            2015 as a starting date because that year marked a substantial
    Power Plants                                                         uptick in retirements of coal-fired generating capacity, but this
                                                                         assumption excludes some coal mining counties that faced
         400                                                             dramatic job losses during the downturn in the coal industry in
                                                                         the early part of the 2010s.
         350

         300                                                             RISK CRITERIA FOR COUNTIES’ DEPENDENCE
                                                                         ON THE COAL INDUSTRY
         250
                                                                         To evaluate the dependence of a county on the coal industry,
         200                                                             we identified 10 risk criteria for the severity of the economic
                                                                         fallout from the decline of the industry. This is not intended
         150
                                                                         to be an exhaustive list, and additional criteria and economic
         100                                                             metrics could also be considered as part of future work.
                                                                              For past coal mining counties:
          50
                                                                         •   Loss of at least 25 percent of mining jobs between 2015
           0
                                                                             and 2019, or
                 2,500
                                                                         •   Decline of at least 10 percent in coal production from
                           Plant Size (MW capacity)                          2015 to 2019.
    This figure summarizes reported employment data from rate-               For current (2019) coal mining counties:
    regulated coal-fired power plants of different sizes. These data
    were used to estimate employment for the rest of the nation’s        •   At least 50 people employed by coal mines in 2019.
    coal-fired power plants (see technical appendix).
                                                                             For counties with recent coal-fired power plant closures:

6     union of concerned scientists | utility workers union of america
•   Retirement of at least 100 MW of coal-fired generating               •    The five-year average poverty rate is higher than the
    capacity between 2015 and 2019, inclusive,5 or                            national average.
•   Retirement of at least 100 MW of coal-fired generating                    These 10 risk criteria provide an initial look at which
    capacity in 2020.                                                    counties have been and will be most affected by the decline of
    For counties with operating coal-fired power plants:                 the coal industry.

•   At least 50 people employed at coal-fired power plants
    in 2019, or                                                          Counties at Risk
•   Announced early retirement of at least 100 MW of coal-               Based on our definition of a coal county and the 10 risk criteria
    fired generating capacity by the end of 2030.                        for evaluating the severity of the economic fallout from coal’s
    For any coal county:                                                 decline, we created a map showing the regions of the country
                                                                         that have been or may be hardest hit (see Figure 2). Navajo
•   Number of coal jobs as a fraction of population is more              County, Arizona, meets nine of the 10 risk criteria, the most
    than twice the average of all coal counties,6 or                     of any county nationally. Two counties—Muhlenberg and
•   The five-year average unemployment rate is higher than               Webster counties in Kentucky—meet eight of the criteria.
    the national average, or                                             Five additional counties meet seven criteria: Sangamon

FIGURE 2.   Coal Counties

                                                                   Risk Criteria for Coal Counties
                                                Count of Vulnerability Criteria
                                                                                                                             9

                                                                                Risk Indicators for Coal Counties
This map shows the 462 coal counties as defined by this analysis, with darker shades representing those meeting more of the risk
criteria. Approximately 16 percent of the coal counties identified in this
                                                                 Count      analysisIndicators
                                                                       of Vulnerability meet half of the criteria, and more than 60 percent
meet a third of the criteria.                                                                    0                            9

                                                       Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape    7
County, Illinois; Ohio County, Kentucky; Rosebud County,               access to social services; and potential relocation allowances
    Montana; San Juan County, New Mexico; and Jefferson County,            (BGA 2019; JTF 2020). This analysis develops for policymakers
    Ohio. In all, 28 counties meet at least six criteria, 74 counties      an initial ballpark estimate of the cost of supporting these
    meet at least five, and 163 counties meet at least four. Only          future dislocated workers in finding new jobs with family-
    14 counties of those we identified as coal counties do not             sustaining wages and the ability to join a union, as well as
    meet any of the criteria.                                              support for workers who have already lost their jobs in recent
         The 28 counties that met at least six criteria are listed in      years. In total, the cost of these supports ranges from
    Table 2. Of these counties, 26 were either above the national          approximately $33 billion over 25 years to $83 billion over
    average for five-year average unemployment rate or five-year           15 years, a small fraction of the money that will be invested in
    average poverty rate, 26 saw a decline of at least 10 percent          the energy system in the coming decades as we shift to a low-
    in coal production, 23 had at least 50 people employed by coal         carbon economy. This is only a down payment, however, as
    mines in 2019, and 20 had at least 50 people employed at coal-         more support will be needed for communities to clean up legacy
    fired power plants in 2019.                                            issues and invest in economic diversification.
         But as Figure 2 illustrates, the impact of the shift away from         Much has been said and written about coal in the last
    coal will be felt nationwide, rather than limited to the counties      decade—especially over the last four years, when a theme has
    where coal is most concentrated. Coal mining tends to be con-          been bringing back coal jobs. But the industry, and the jobs
    centrated in a few regions of the country, including Appalachia,       and economic activity that it supports, has reached a moment
    the Powder River Basin, the Illinois Basin, and tribal lands in        of reckoning. The reality is that coal will not return to its
    the Southwest. Many of these places are rural and isolated,            heyday; the industry will continue its decline simply because
    meaning that the coal mine is the only opportunity for                 cheaper and cleaner technologies are widely available and
    well-paying jobs in the area and that many other businesses            rapidly scaling. As the energy mix changes, rather than offer
    in the community either support mining activities or depend            false hope for reinvigorated coal markets, we must acknowledge
    on coal miners as customers.                                           that thoughtful and intentional planning and comprehensive
         Coal-fired power plants, on the other hand, are more              support are critical to honoring the workers and commu-
    geographically dispersed. The closure of coal plants, particularly     nities that have sacrificed so much to build this country. The
    the larger power plants located in more rural areas, result in a       fact is that this shift is already happening, largely without any
    significant portion of job losses and lost tax revenue that supports   intentionality at all, leading to devastating consequences
    county services.                                                       for families and communities. We owe far more to those who
                                                                           have given us so much.

    A Call for an Intentional Vision
                                                                           Jeremy Richardson is a senior energy analyst at the Union
    Although workers and communities have suffered and are                 of Concerned Scientists. Lee Anderson is the government affairs
    facing an uncertain future as the coal industry declines, solu-        director at the Utility Workers Union of America.
    tions are readily available with bold and visionary action from
    policymakers. Comprehensive solutions include long-term                AC K N OW LE D G M E NT S
                                                                           This report was made possible by the generous support of members of the Union
    individual supports and benefits for dislocated workers, long-         of Concerned Scientists.
    term investments in community infrastructure, empowering                   The authors would like to thank the following people for their thoughtful
                                                                           review of the report: Dennis Dougherty of the Colorado AFL-CIO, Ted Boettner
    local leadership to drive place-based solutions, and ensuring          of the Ohio River Valley Institute, and Daniel Raimi of Resources for the Future.
    that the legacy of coal mines and coal-fired power plants is               The authors are also grateful to their colleagues at the Utility Workers Union
                                                                           of America and the Union of Concerned Scientists for their thoughtful input,
    fully cleaned up. These elements are critical to a fair, just, and
                                                                           advice, feedback and support, especially Erin Bzymek, Jim Harrison, Julie
    equitable shift to a low-carbon economy, and it will take              McNamara, Steve Clemmer, Sam Gomberg, Joe Daniel, and Rachel Cleetus.
    decades of robust and sustained investment.                            Special thanks go to Bryan Wadsworth, Heather Tuttle, Karin Matchett, and
                                                                           Bradie Bradshaw for their roles in the report’s editing and production.
         A comprehensive set of systemic supports is needed                    Organizational affiliations are listed for identification purposes only.
    for workers who lose their jobs as a result of the decline in          The opinions expressed herein do not necessarily reflect those of the individuals
                                                                           who reviewed the work. The Union of Concerned Scientists and Utility Workers
    the coal industry. At a minimum this includes: five years of           Union of America bear sole responsibility for the report’s contents.
    comprehensive wage replacement; guaranteed health care
    coverage; continued employer contributions to retirement
    funds or pension plans (that recognize time of service); robust
    education opportunities including paid tuition for academic,
    vocational, and other programs; job placement assistance;

8     union of concerned scientists | utility workers union of america
TABLE 2.    The 28 Most At-Risk Coal Counties

                                                                                 Risk Criteria
                            Count of
 County            State                     1        2        3         4         5         6        7         8         9        10
                            Criteria
 Navajo            AZ            9           ✓        ✓        ✓         ✓         ✓         ✓         ✓                  ✓         ✓
 Muhlenberg        KY            8           ✓        ✓        ✓         ✓         ✓         ✓                            ✓         ✓
 Webster           KY            8           ✓        ✓        ✓         ✓                   ✓                  ✓         ✓         ✓
 Jefferson         OH            7           ✓        ✓                            ✓         ✓         ✓                  ✓         ✓
 Ohio              KY            7           ✓        ✓        ✓                             ✓                  ✓         ✓         ✓
 Rosebud           MT            7                    ✓        ✓                   ✓         ✓                  ✓         ✓         ✓
 San Juan          NM            7                    ✓        ✓         ✓                   ✓         ✓                  ✓         ✓
 Sangamon          IL            7                    ✓        ✓                   ✓         ✓         ✓                  ✓         ✓
 Allegany          MD            6           ✓        ✓        ✓                             ✓                            ✓         ✓
 Big Horn          MT            6                    ✓        ✓                             ✓                  ✓         ✓         ✓
 Boone             WV            6           ✓        ✓        ✓                                                ✓         ✓         ✓
 Clearfield        PA            6           ✓        ✓        ✓         ✓                                                ✓         ✓
 Coshocton         OH            6           ✓                           ✓         ✓         ✓                            ✓         ✓
 Daviess           KY            6                    ✓                  ✓         ✓         ✓                            ✓         ✓
 De Soto           LA            6                    ✓        ✓                             ✓         ✓                  ✓         ✓
 Harlan            KY            6           ✓        ✓        ✓                                                ✓         ✓         ✓
 Harrison          OH            6           ✓        ✓        ✓                                                ✓         ✓         ✓
 Indiana           PA            6           ✓        ✓        ✓                             ✓                            ✓         ✓
 Linn              KS            6           ✓        ✓                                      ✓                  ✓         ✓         ✓
 Marshall          WV            6                             ✓         ✓                   ✓                  ✓         ✓         ✓
 Moffat            CO            6                    ✓        ✓                             ✓         ✓        ✓                   ✓
 Montgomery        IL            6           ✓        ✓        ✓         ✓                                                ✓         ✓
 Perry             KY            6           ✓        ✓        ✓                                                ✓         ✓         ✓
 Pike              IN            6           ✓        ✓                  ✓                   ✓         ✓        ✓
 Pike              KY            6           ✓        ✓        ✓                                                ✓         ✓         ✓
 Saline            IL            6           ✓        ✓        ✓                                                ✓         ✓         ✓
 Sweetwater        WY            6           ✓        ✓        ✓                             ✓                  ✓         ✓
 Wise              VA            6                    ✓        ✓                             ✓                  ✓         ✓         ✓
 Total Counties Meeting Each Criterion      19       26        23       10         7        20        7         16       26        26

Risk Criteria:
1.    Loss of at least 25 percent of mining jobs between 2015 and 2019
2.    Decline of at least 10 percent in coal production from 2015 to 2019
3.    At least 50 people employed by coal mines in 2019
4.    Retirement of at least 100 MW of coal-fired generating capacity between 2015 and 2019, inclusive
5.    Retirement of at least 100 MW of coal-fired generating capacity in 2020
6.    At least 50 people employed at coal-fired power plants in 2019
7.    Announced early retirement of at least 100 MW of coal-fired generating capacity by the end of 2030
8.    Number of coal jobs as a fraction of population is more than twice the average of all coal counties
9.    The five-year average unemployment rate is higher than the national average
10.   The five-year average poverty rate is higher than the national average

                                                    Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape   9
E N D N OTE S                                                                         CRFB (Committee for a Responsible Federal Budget). 2021. “How Much
     1		 For the purposes of this analysis, we assume full five-year wage replacement         COVID Relief Money Is Left?” Committee for a Responsible Federal
         for all dislocated workers. Policymakers could also design this as a wage
                                                                                              Budget (blog). January 27, 2021. Washington, DC. https://www.crfb.
         differential, which would lower total costs—dislocated workers who find
         new employment during the five-year period would be eligible for only the            org/blogs/how-much-covid-relief-money-left
         difference between their old and new salary.                                      Deyette, Jeff. 2019. “States March toward 100% Clean Energy:
     2		 Employer contributions to 401(k) plans can range from 5 to 7 percent.                Who’s Next?” The Equation (blog). August 28, 2019. Cambridge,
         Defined-benefit plans are difficult to quantify because eligibility require-         MA: Union of Concerned Scientists. https://blog.ucsusa.org/jeff-
         ments are based on age and time of service. This analysis assumes that
                                                                                              deyette/states-march-toward-100-clean-energy-whos-next
         these are captured within the adders of 30 percent to 60 percent assumed
         in the high and low cases, respectively (see technical appendix at www.           DOD (Department of Defense). 2019. “75 Years of the GI Bill: How
         ucsusa.org/resources/support-coal-workers).                                          Transformative It’s Been.” January 19, 2019. Arlington, VA. https://
     3		 The cost of both of these benefits is likely to be small relative to the total.      www.defense.gov/Explore/Features/Story/Article/1727086/75-
         Counseling services are assumed to be included in the rough estimate of              years-of-the-gi-bill-how-transformative-its-been/
         full wage replacement as part of health care coverage. Relocation eligibility
         must be designed carefully to avoid incentivizing the negative social and         Earthjustice. 2020. “Mapping the Coal Ash Contamination.” October 6,
         economic impacts on communities that arise from depopulation.                        2020. San Francisco, CA. https://earthjustice.org/features/map-
     4		 Coal mines that reported no production may still have a small number of              coal-ash-contaminated-sites
         employees present, and they are included in the definition of a coal county.      EIA (Energy Information Administration). 2012a. Annual Coal Report
     5		 This criterion also applies to unit-level retirements, in which portions of a
                                                                                              2011. Washington, DC.
         power plant are permanently shut down without shuttering the entire plant.
     6		 This works out to about 1.5 percent of the county’s population employed           ———. 2012b. “Competition Among Fuels for Power Generation Driven
         as coal miners or plant workers.                                                     by Changes in Fuel Prices.” Today in Energy (blog). July 13, 2012.
                                                                                              Washington, DC. https://www.eia.gov/todayinenergy/detail.
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                                                         Supporting the Nation’s Coal Workers and Communities in a Changing Energy Landscape          11
Supporting the Nation’s Coal
Workers and Communities in
a Changing Energy Landscape
                                         The people who have powered
                                         the United States for generations
                                         deserve to be part of the new
                                         national economy.

The national shift away from coal as a primary source of elec-            transformation of the nation’s energy sector will require inten-
tricity generation has accelerated over the last decade, leaving          tional, robust, and sustained investments in coal workers, their
coal workers and their families behind while unraveling the               families, and their communities. Investing in the future of this
social fabric of their communities. The workers and the communi-          workforce means providing workers with empowering resources
ties they call home have powered the nation for generations;              that will offer them the tools—and allow them the time necessary—
they deserve a fighting chance to be a part of a new national econo-      to truly adapt, to secure family-sustaining wages and benefits,
my and to be honored for the service they have given the nation.          and to have the ability to join a union. Not only is it possible to
     The Utility Workers Union of America and the Union of                meaningfully honor and support coal workers, but these compre-
Concerned Scientists understand that a fair and equitable                 hensive policies are also affordable.

                                                                                                          Find THIS DOCUMENT online:
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